Agenda - Council - 01/24/2023 - Laserfiche WebLink

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• Act of God language was added to the CONSTRUCTION DEADLINE Section. • Reimbursement of Platting costs up to $3,500 if project proceeds. Business Assistance Application Review Review and analysis of the Business Assistance Package has been completed by City Staff and Ehlers. The project scores a 29.65 which is a moderate to high score for our project rating system. Analysis by Ehlers above supports the need for assistance for this project, the TIF "But -For" test and does not unduly enrich the developer. Staff believes that this hotel project is a potential catalyst to draw in investment from retail/restaurants. It is clear that TIF is needed to bring this project to fruition. Under current legislation, the City only has the ability to provide TIF assistance for projects in the COR until November 2023. Additional Non -Binding Action being asked of the City Council In addition to approving the First Amendment to Purchase Agreement, Staff is asking the City Council to provide feedback to the Developer in support for project, deal structure and assistance level. The Developer has indicated that it will not move forward unless the City generally supports the financial assistance requested. Developers are responsible for the costs incurred to process the TIF application. As part of the application, the Developer would incur costs on their end as well to further prepare plans on their project to provide greater detail. Next Steps (Future Meetings) TIF Agreement and awarding Business Subsidy (Public Hearing) In the event that the Developer is comfortable with the assistance package recommended by the EDA and is confident it has the general support of the City Council, staff will begin to work with Ehlers and Taft Law to put together a TIF Agreement outlining the terms and conditions of the financial assistance and business subsidy. As part of the Business Assistance Application the Developer has provided the City $10,000 in funds. These funds can be used for further financial analysis and to begin drafting of the TIF Agreement outlining the structure and amount of the TIF business assistance package. A public hearing will be held at a later date for the City Council to formally consider approval of the business subsidy. *It should be noted that approval of the First Amendment to Purchase Agreement does not bind the City Council to grant the business subsidy package of the land cost write down and Pay -Go TIF for Site Improvements and Site Development Reimbursement. This can only be granted after the Public Hearing and by Council vote. However, Staff is asking the City Council to provide feedback, in good faith, to the Developer in support for project, deal structure and assistance level outlined in this case. The Developer has indicated that it will not move forward unless the City provides the financial assistance requested. Site Plan and Plat Approval If the Developer is comfortable moving forward with the project and support is shown by the City Council for the proposed assistance amounts, a formal Site Plan and Plat Applications will be submitted. The site plan and TIF Assistance approval processes will run concurrently. Alternatives: 1) Adopt Resolution #23-034 Approving First Amendment to Purchase Agreement for Ramsey Properties, LLC (as presented); subject to City Attorney Review (Staff recommendation). 2) Adopt Resolution #23-034 Approving First Amendment to Purchase Agreement for Ramsey Properties, LLC (with changes); subject to City Attorney Review 3) Something else. Additional Non -Binding Action Being asked of the City Council: In addition to considering approval of the First Amendment to Purchase Agreement, Staff is asking the City Council to provide feedback to the Developer in support for project, proposed deal structure and assistance level recommended by the EDA. The Developer has indicated that it will not move forward